OWNERS of the second largest council farm estate in Wales say central government funding is urgently needed to prevent the farming ladder collapsing.

Anglesey County Council said its tenant farm system is desperately short of money and in danger of disintegrating.

Its farm estate extends to 6,399 acres and has 93 tenants in its 95 farms, with two currently vacant.

The council said at least 80% of its farmhouses are in need of renovation and estimates £4.8m is needed to bring them into presentable condition.

Only 20 farmhouses have had council-installed central heating and on many holdings tenants are left to carry out their own repairs.

"Damp and mould growth are commonplace, resulting in some rooms being incapable of occupation in numerous dwellings," said Anglesey’s principal valuation officer WG Davies.

He was giving evidence to the National Assembly’s rural development sub-committee, which is holding an inquiry into Wales’ local authority farm system.

Anglesey council currently pays £60,000-£80,000-a-year on repairs but is being forced to sell off its smallest properties to finance the improvements.

The council is also a trustee for the 1,106-acres David Hughes Charity Estate which needs around £800,000 to update its 15 farms.

More money is needed to repair farm buildings while new challenges, such as NVZ zones, will require investment in grain stores, slurry lagoons, covered yards and manure stores.

If the money was not forthcoming, young Welsh families could be driven off the land, leading to a new influx of second home owners, said Mr Davies.

He suggested the Assembly Government accessed funding from the Wales Rural Development Plan.

"The future of young farmers who have no avenues open for entry into agriculture other than through council-let farms depends on support from local authorities and the Welsh Assembly Government," he told the inquiry.

"Unless both of these invest heavily in the estates there will definitely not be a county farms estate in years to come, which would be a great loss to the rural countryside."

Denbighshire County Council is currently reviewing its agricultural estates and will report back in the autumn.

It too has a need for substantial investment and is faced with the need to comply with new legislation.

Pending the review, the council will not be letting any of its vacant holdings on long-term tenancies.

However it has sanctioned the disposal of one of its retirement holdings, Glanmeirchion Farm, near Denbigh, which was vacated earlier this year.

Subject to planning, the farmhouse and barn will be sold this autumn. Its land will be added to an adjoining council holding.

A spokeswoman said: "The proceeds of any sale will be used to address investment on the farm estate and to fund capital works elsewhere in the council."

Anglesey council points out its estate farms are net contributors to council coffers, while NFU Cymru said council farms also provided useful services such as renewable energy, waste recycling and education.

Selling them off to help cash-strapped councils would be "tantamount to selling the family silver", tenant dairy farmer Stephen Alderman told the Assembly inquiry.